'High end realty devpt will drive growth of golf'

PUNE: Development of high-end real estate projects and resort style residential complexes have the potential to drive the growth of the sport of golf in India, participants in the second India Golf Expo said on Thursday.

Golf courses are being planned as part of many new residential complexes since these complexes have offered to absorb the development cost of golf course within the overall project cost, the participants said.

Lalit Kumar Jain, president of Confederation of Real Estate Developers Associations of India (Credai) said in his keynote address to the expo that the popularity of the sport will rise manifold if good quality golf courses are developed across the country. "India has a very high number of high networth individuals (HNIs) but less than 1 per cent of them play golf as compared with over 25 per cent HNIs playing golf in the developed world," Jain said.

Availability of golf courses will help add to India's attraction as a tourist destination, the delegates said.

Anil Seolekar, president of the Indian Golf Industry Association said the tourism ministry of the central government has announced a scheme to fund golf courses in different states in the country on the basis of private public partnership model. The ministry has an allocation of Rs 50 crore per state to develop golf courses he said, adding that Maharashtra has already identified some locations where it will invite private players to bid for developing golf courses which may come up as part of larger tourist spots.

Kevin Ramsey from Golfplan Inc. said India's weather is favourable for the game and a beginning can be made irrespective of the size of land availability. "It is more important to create awareness about the sport and encourage young people to play," he said.

Paul Reeves from Pacific Coast Design said golf courses could be used for commercial purposes, thus, improving financial viability of the sport venues.

For a long time now, the real estate industry has been pitching for an industry status for the sector. According to Ajay Maken, the Union Minister for Housing and Poverty Alleviation, this will improve the access to funding and help in creating more affordable housing stock in the country.

NEW DELHI: Caught in a legal battle with Sebi and directed by the Supreme Court (SC) to refund Rs 19,000 crore to investors by depositing this amount with the market regulator, Sahara has asked for the appointment of a credible agency to verify the authenticity of claims of repayment made by the two Sahara companies - Sahara India Real Estate Corporation and Sahara Housing Investment Corporation.

There is a worrisome trend today. People take loans to acquire properties - not just for home for self use, but for investment in home and land. The current thinking among most investors is that property is the only asset that will give good returns. One may wonder - what is so worrisome about this? The point is that investors are going in for multiple properties, in many cases liquidating most of what they have and taking a loan for the rest.

If you are still waiting to buy your first house, the budget has some good news for you. The finance minister has extended an additional benefit of Rs 1 lakh on home loans up to Rs 25 lakh for first time property buyers.

in a move that may bring relief to developers, the Ministry of Housing & Urban Poverty Alleviation has decided to keep commercial offices and shops/malls out of the purview of the Real Estate (Regulation & Development) Bill.

For the real estate sector this budget didn't provide any proposals which could benefit the sector significantly. Additional interest deduction of Rs 1 lakh for low cost housing (where loan taken is less than Rs 25 lakh) in addition to the current deduction of Rs 1.5 lakh should be welcomed by the sector.

MUMBAI/BANGALORE: Luxury homes for the rich would become more expensive after the finance minister today reduced the abatement on service tax availed by real estate developers for homes and flats above 2,000 sq ft or costing Rs 1 crore and above to 70% from 75% earlier.

"One has to compliment the Finance Minister, Mr P Chidambaram, for addressing the nation's priorities in his budget for 2013-14," said Gagan Banga, CEO, Indiabulls Financial Services Ltd, adding, "he has presented a realistic and balanced budget, which is a good beginning."

NEW DELHI: Housing prices have risen in 18 major cities, including Delhi and Mumbai, by up to 9.6 per cent during October-December period 2012 compared with the previous quarter, according to National Housing Bank (NHB).